Money

Ripple Surges After Teaming Up With MoneyGram

U.S. money transfer giant MoneyGram is teaming up with blockchain firm Ripple to test payments using the latter’s cryptocurrency XRP.

MoneyGram, based in Dallas, Texas, will use the XRP cryptocurrency to speed up and reduce the cost of transferring money through Ripple’s payment network xRapid.

XRP was seen surging on the news, and flew almost 15 percent higher to $2.22 at 9:55 a.m. ET, according to Coinmarketcap data. The move marked a recovery following downward pressure across most major cryptocurrencies Thursday after reports of South Korea preparing a bill to ban cryptocurrency trading.

Ripple claims an average transaction on its network takes between two and three seconds to process. Bitcoin transactions, on the other hand, take around 51 minutes on average to go through, according to data by industry website Blockchain.info.

Ripple has made headlines in recent weeks, as its native digital currency has surged — and fallen — dramatically. It temporarily became the second-largest cryptocurrency by market value last month, usurping ethereum, after a huge rally.

XRP has since declined significantly in value but Ripple said its price has not been reflected accurately, claiming that industry website Coinmarketcap’s decision to remove Korean cryptocurrency exchanges from its platform has affected prices. The website removed Korean exchanges due to the “extreme divergence” in prices compared to the rest of the world.

“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram,” Ripple CEO Brad Garlinghouse said in a statement Thursday.

“Money transfer companies are incredibly important because they help people get money to their friends and loved ones.”

Garlinghouse added that, by using Ripple’s digital asset, MoneyGram would be able to move money “as quickly as information.”

Ripple is backed by a number of big international banks and financial institutions. In November, the firm teamed up with American Express and Santander on a blockchain pilot to speed up cross-border payments between the U.K. and the U.S.

This story originally appeared on CNBC. Image courtesy of Paul Thomas/Bloomberg/Getty Images.

Join The Discussion

Vladimir Putin Takes Icy Plunge To Mark Orthodox Epiphany
Vladimir Putin Takes Icy Plunge To Mark Orthodox Epiphany [Video]
Uproar Over Watches Threatens Thailand’s Ruling Generals
Uproar Over Watches Threatens Thailand’s Ruling Generals
Jacinda Ardern
New Zealand Prime Minister Announces First Pregnancy [Video]
French President Emmanuel Macron and Britain’s Prime Minister Theresa May
UK And French Leaders Reach Border Deal, Disagree On Brexit [Video]
Bitcoin
U.S. CFTC Sues Three Virtual Currency Operators For Fraud
Did The Bubble Burst
Did The Bubble Burst? [Podcast]
US Sheriffs Welcome $1.7 Million After Students Plead Guilty To Stealing 5,400 BTC
US Sheriffs Welcome $1.7 Million After Students Plead Guilty To Stealing 5,400 BTC
ICO Spotlight Ink Protocol, Fluence
ICO Spotlight: Ink Protocol, Fluence [Podcast]
Highly Effective Ways Of Using Reputable Online Workers
Highly Effective Ways Of Using Reputable Online Workers [Infographic]
6 Loopholes To Stay Alive
Facebook News Feed Armageddon Survival Guide: 6 Loopholes To Stay Alive
6 Free Twitter Marketing Tools
6 Free Twitter Marketing Tools [Infographic]
How To Be Insta Famous Without Taking Off Your Clothes
How To Be Insta-Famous Without Taking Off Your Clothes [Podcast]
Instagram's Adding Some New Tricks, Including Text-Only Stories Screens And GIFs
Instagram’s Adding Some New Tricks, Including Text-Only Stories Screens And GIFs
WhatsApp
WhatsApp’s Rolling Out New Business Tools Via A Dedicated App
Facebook Updates
Facebook’s Adding The Ability To Post To Stories From Desktop
Linkedin
LinkedIn’s Putting Renewed Focus On Groups, With New Tools And Options
8 Techniques To Reduce Stress In 15 Minutes
8 Techniques To Reduce Stress In 15 Minutes [Infographic]
How To Wake Up Early
How To Wake Up Early [Infographic]
Low On Motivation
Low On Motivation? 7 Psychological Hacks To Get Going
How To Stop Perfectionism From Controlling Your Life
How To Stop Perfectionism From Controlling Your Life [Infographic]